Barnes & Noble Projects Wider Annual Loss; Shares Drop Most in 5 Months
Barnes & Noble Inc., the largest U.S. bookstore chain, forecast a wider loss for the year, sending the shares down the most in five months.
The loss for the year will be as much as $1.15, the New York-based company said in a statement today. In August, the company forecast a loss of up to 65 cents. The stock fell as much as 17 percent.
The book chain, led by Chief Executive Officer William J. Lynch Jr., is investing in e-readers as more customers switch to reading on devices like Amazon.com Inc.’s Kindle. Last quarter, the retailer released a color version of its Nook e-reader.
The company also said today that it’s still completing a review of its strategic options, including a potential sale. There’s no guarantee a transaction will occur, the company said.
Barnes & Noble declined $1.43, or 9.6 percent, to $13.44 at 9:40 a.m. in New York Stock Exchange composite trading. The stock earlier sank as low as $12.27, the largest intraday decline since June 29.
The net loss narrowed to $12.6 million, or 22 cents a share in the quarter ended Oct. 30, from $24 million, or 43 cents, a year earlier, Barnes & Noble said. Earnings this quarter will be 90 cents to $1.20, the bookseller said. Analysts project $1.24 a share, the average of five estimates compiled by Bloomberg.
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